Director Tor Olav Troim and the top two officers of IPO candidate Hygo Energy Transition are set to reap incentive bonuses valued at some $66m if the company is able to sell the $558m flotation to investors.
The reward represents a combined 66% share of a management incentive scheme (MIS) of $98.75m established for Hygo employees, and would be paid to Troim, chief executive officer Eduardo Antonello and chief financial officer and chief financial officer Eduardo Maranhao.
According to the amended IPO prospectus filed Thursday, all MIS compensation will be paid by Stonepeak Infrastructure Partners, a 50-50 joint venture partner in the Hygo vehicle formerly known as Golar Power.
Antonello is to receive the largest cash payout under the scheme at $6m, plus a grant of 958,000 common shares. Maranhao would get $3m cash and 846,000 shares, while Troim receives his bonus entirely in 1.1m shares.
All calculations are based on the IPO pricing at the $19.50 midpoint of its target price range between $18 and $21.
"In June 2018, our board of directors approved a management incentive scheme (MIS) which granted 1,824,014 units to certain employees which entitled them to receive cash distributions on realisation of value by the shareholders from their investment in the company from the proceeds of a liquidity event such as an IPO ... provided that the proceeds from such liquidity event exceeds a target hurdle rate and the employees continue to be employed," Hygo said in its filing.
Hygo plans to list the shares on the Nasdaq Global Select Marketplace under the ticker HYGO.
Golar, which is finally starting a long-running process to spin-off its different business activities, said that after the close of the IPO it expects to own 50m shares in Hygo.
Hygo has said it plans to use the proceeds from its IPO to fund spending on its growth and to redeem all of the preference shares held by Stonepeak.
